Here is a brief based on a news release I read . After 9/11 a victims compensation fund was created to help the families of those who died in the disaster. The Fund is a no-fault system designed to maximize the amount of money given to the families of victims. The government decided that lawyers who handled files could not charge fees.
Of course - some lawyers tried to find a way to use 9/11 for their own gain.
A widow who was being taken advantage of sought help from Simmons, Jannace & Stagg . She needed someone to protect her against an attorney who tried to charge a $2,000,000 contingency fee. This lawyer filed suit in federal court seeking a declaratory judgment entitling him to his fee.
Simmons, Jannace & Stagg responded with a clever case that challenged the Federal court's actions, entreating them to stay out of the problem. The federal court, after hearing argument, agreed that the Victims Compensation Fund did not provide federal court jurisdiction.
As far as simmons, jannace & stagg is aware, this is the first federal court decision holding that attorneys’ fee disputes arising out of the September 11th Victims Compensation Fund should be litigated in the state courts. I thought this story was worth passing on. The full story is on their website.
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